Final official answers to the 2017 IFA Roundtable have been published

19 June 2017 - 10:34pm
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Last week, CRA published in final form its responses to the questions posed at the April 2017 IFA Roundtable. Although these responses have already been mostly summarized, the following table, as a convenient reminder, lists and links these questions and responses and our summaries of the responses, and provides brief descriptors.

Summaries under Summary Descriptor
26 April 2017 IFA Roundtable Q. 1, 2017-0691071C6 - Interaction between s17 and s247 Income Tax Act - Section 247 - New - Subsection 247(7) s. 247(2) generally applies to boost the imputed cross-border interest arising under s. 17
Income Tax Act - Section 17 - Subsection 17(1.1) s. 17(1) does not oust application of s. 247(2)
26 April 2017 IFA Roundtable Q. 2, 2017-0691191C6 - Subsection 247(2) and FAPI Income Tax Act - Section 247 - New - Subsection 247(2) s. 247(2) not applied to a CFA earning FAPI if the transaction has been vetted under foreign OECD-based transfer pricing rules
Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f) s. 247(2) applies for FAPI purposes
26 April 2017 IFA Roundtable Q. 3, 2017-0691131C6 - U.S. LLPs and LLLPs Income Tax Act - Section 96 further extension of grandfathering relief for Florida and Delaware LLPs and LLLPs
Income Tax Act - Section 248 - Subsection 248(1) - Corporation general grandfathering of pre-April 26, 2017 LLPs and LLLPs
Treaties - Article 4 Florida and Delaware LLPs and LLLPs treated like LLCs
Income Tax Act - Section 93.2 - Subsection 93.2(2) Florida and Delaware LLPs and LLLPs subject to s. 93.2
26 April 2017 IFA Roundtable Q. 4, 2017-0691211C6 - App of s. 261(21) to loan with FA Income Tax Act - Section 261 - Subsection 261(20) application of s. 261(21) to deny a hedge of a U.S. dollar loan
Income Tax Act - Section 261 - Subsection 261(6.1) application of s. 261(21) to upstream USD loan to Cdn$ indirect parent
26 April 2017 IFA Roundtable Q. 5, 2017-0691121C6 - Foreign tax credit Brazilian interest on equity Income Tax Act - Section 91 - Subsection 91(4.7) s. 91(4.7) applies year-by-year based on actual dividend deductibility
26 April 2017 IFA Roundtable Q. 6, 2017-0691241C6 - T1134 filing issues Income Tax Act - Section 233.4 - Subsection 233.4(4) no provision of administrative relief from duplicative T1134 filing requirements resulting from amalgamations or CFA transfers
26 April 2017 IFA Roundtable Q. 7, 2017-0691221C6 - Clause 95(2)(a)(ii)(D) Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(D) - Subclause 95(2)(a)(ii)(D)(IV) - Sub-subclause 95(2)(a)(ii)(D)(IV)2 “income” includes “loss,” but s. 95(2)(a)(ii)(D)(IV)2 inapplicable re an LLC interest that is sold before year end
26 April 2017 IFA Roundtable Q. 8, 2017-0691141C6 - NR4 Reporting for non-taxable amount Income Tax Regulations - Regulation 202 - Regulation 202(1) NR4s are required even where there is no Part XIII tax
26 April 2017 IFA Roundtable Q. 9, 2017-0691201C6 - Computation of Earnings for LLCs Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Earnings - Paragraph (a) - Subparagraph (a)(iii) CRA’s new position, that LLCs generally must compute their income under ITA rather than Code rules, need not be applied for surplus calculations for pre-2016 years